With the UK hotel market posting a consecutive secondmonth of strong growth, hoteliers in the East of thecountry experienced year-on-year increases across allkey performance indicators and recorded the highestgrowth in gross operating profit per available room(GOPPAR) of 48.3% in February, according to the latestdata from HotStats.
A combined surge in occupancy of 5.7 percentagepoints and growth in average room rate (ARR) of 3.1%resulted in an increase in revenue per available room(RevPAR) of an impressive 12.7% to £43.42. With nonroomsrevenues also jumping, total revenue peravailable room (TRevPAR) rose by 11.0% to £76.31,representing the fourth consecutive month of year-onyeargrowth for this metric.
This increase in revenue performance was furtherenhanced by effective payroll management and efficientoperating cost control with departmental operating profitper available room (DOPPAR) climbing by 16.6% to£39.22. Although overheads per available room rose by2.6%, profit conversion went up from 14.9% to 20.0%delivering this impressive GOPPAR growth.
Edinburgh hotel market continues to shine
In February, hoteliers in Edinburgh registered a 12thconsecutive month of year-on-year improvement in bothTRevPAR and GOPPAR of 10.5% and 22.6%respectively, underlining the strength of this market,according to the latest data from HotStats.
RevPAR increased by 9.4% driven by a 4 percentage point increase in occupancy to 66.8% and an uplift in ARR of 2.8% to £80.99. With meeting room hire revenue per available room remaining flat, additional revenue per available room deriving from food (+15.5%) and beverage (+21.0%) helped to boost TRevPAR by 10.5% to £91.02.
Astute payroll and operating cost control combined with travel agent commission per room let decreasing by 2.4% to £6.62 resulted in DOPPAR increasing by 12.1% to £43.96. As a result, GOPPAR leapt up by 22.6% to £16.19.
Oxford hotels posted strong results
Hotels in Oxford achieved positive year-on-year changes in all key performance indicators in February with TRevPAR and GOPPAR increasing by 12.3% and 20.3% respectively, according to the latest data from HotStats.
Significant growth was recorded in both occupancy (+5.3 percentage points) and ARR (+4.6%) leading to a 12.4% jump in RevPAR, further supported by similar improvements in ancillary departments and most notably from food revenue per available room (+22.2%), TRevPAR grew by 12.3% to £106.38.
Despite increases in food cost of sales (+4.2 percentage points) and F&B payroll (+1.4 percentage points) reducing F&B profit conversion to 20.9% from 25.9%, an increase in rooms departmental profit conversion (+3.0 percentage points to 71.1%) helped drive a 12.4% DOPPAR increase to £58.98. With total payroll decreasing by 0.6 percentage points, GOPPAR rose by 20.3% to £33.08.
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